Deccan Cements (DECCANCE)

FairStock Score: 21/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market is offering Deccan Cements at ₹545.35, almost exactly its book value of ₹536.03, with a market cap of ₹764 Cr. As Graham would ask, what am I getting for that price? The balance sheet gives some asset support, and promoters own 56.25%, so their interests are aligned. But the business quality is not comforting. ROE is only 3.88%, ROCE 1.53%, and the latest quarter produced sales of ₹131 Cr but a net loss of ₹1 Cr. A cement company should earn above its cost of capital through the cycle; this one is barely earning anything. The reported sales growth of 79.90% catches the eye, but profit growth is -40.60%, and the five-year revenue CAGR is -3.45%, so I suspect volatility rather than durable growth. Debt/equity of 1.00 adds risk in a cyclical industry. Valuation isn't a bargain on earnings: P/E 26.73 and PEG 2.44, with dividend yield only 0.11%. P/B 1.02 may look cheap, but book value is only attractive if assets earn a fair return. The Piotroski F-Score of 4/9 and FairStock Score of 21/100 confirm financial fragility. The stock has fallen from ₹1,098 to near its 52-week low of ₹530.90, but a falling price alone is not a margin of safety. I would classify it as a cyclical, not a safe compounder. Before considering it, I'd want evidence that sales growth converts into profits, ROCE moves toward double digits, and debt/equity falls. Until then, I'd watch from the sidelines.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer